Google, a popular technology company specializes in various internet associated services and products like search engines, online advertising technologies, software, hardware, and cloud computing.
It is one of the Big Four companies together with Amazon, Apple, and Microsoft. Google was established during the year 1998 by Larry Page and Sergey Brin.
They were students of Stanford University in California and pursuing their Ph.D. They own about 14% of its shares. They made Google as a private company in California and then started in Delaware during the year 2002. During the year 2004, there was an initial public offering and Google shifted its headquarters in Mountain View, California.
During the year 2015, Google had announced its plans of reorganizing its various services as a multinational company called Alphabet Inc. Google is the leading subsidiary of Alphabet and will remain to the umbrella company for the various services and internet interests of Alphabet. Google’s CEO is Sundar Pichai.
The global search engine has transformed the digital world to a great extent. It has made life simple and easy where anyone can collect information with just a click.
The SWOT analysis of Google differentiates all the main strengths, weakness, opportunities, and threats that give assistance to the company to scale up more. Read out this article, to get an understanding of where Google stands.
Before we begin in-depth on the SWOT analysis of Google, let us understand a bit of the background of the company Google.
The following points provide you a bit of Google’s background:
- The company is known with the name of Google.
- Google was recognized during the year 1998 and is headquartered in California, United States.
- The company logo is shown in Image 1.
- The various industries served by the company are the following:
- Computer Software and Hardware
- Search Engine
- Cloud Computing
- Online Advertising Technologies
The SWOT analysis of Google highlights the strengths of Google and its weaknesses where it must improve on. It also mentions about the various opportunities that it has and the potential threat of the brand.
To make sure that Google meets the long-term competitive advantage it must address the various concerns highlighted in the SWOT analysis of Google.
Let us discuss on the SWOT analysis of Google.
Strengths in the SWOT Analysis of Google
- Popular Search Engine – Google possesses a popular search engine that is popular across the world and is mostly used by all. Google is the source for about 70% of the world’s questions and has more than one billion hits per month. For every doubt someone has, they tend to take Google and search in it. The brand provides addresses to queries from almost all domains and has no boundaries to the domain. Being the most popular search engine serving millions of people, it is indeed a great strength for the brand.
- Vast Market Share – Being a top technology company, Google has about 28% of the market share in the world. This is a great strength of the brand.
- Huge Data Collection – The brand has established many programs and apps. Android is the operating system that is used by many smartphones. Many of Google’s features are being used enormously by many people. Gmail is the average choice of email for many personal and business use. Many of the businesses make use of the Gmail domain for their internal communication as well. Google Drive owned by Google provides free and paid digital file storage. Then, for videos, there is YouTube that is a popular and the biggest platform for video sharing in the world. Google owns YouTube as well. All these tools used for various purposes of Google collects data from various sources and Google provides customized services to each user based on the app.
- Biggest Traffic Generator – Yet another strength of the brand is its biggest generation of traffic. This powerful brand produces about 1.2 billion hits per month making it the biggest traffic generator in comparison to its competitors like Yahoo, Bing, etc.
- Ad Focused – The biggest chunk of Google’s profit comes from ad revenue. The brand takes about a 30% cut of the profit that is got from the Google Play store. The various partnerships with third-party websites get in the ad revenue as well. All these techniques have given Google to generate about $38.9 billion during the year 2019 from the ad revenue.
- Free Upgrades and Software – This brand has plenty of free upgrades to its various apps that would make the users use it quite often. Most of the brand’s profit comes from its various advertisements that would allow Google to promote free software and updates. This is a big strength of the brand and this is something that the company Microsoft could not do it.
- Dominant in many Internet Services – Google is a popular internet company that has its main competition in the web search and the online advertising market. But the company’s product collection is varied and includes both hardware and software products and services. Google dominates the market in the following area:
- Online Advertising – Google’s main revenue source is its advertising. The brand controls the digital advertising market in various channels that include AdSense, AdWords advertising program, YouTube, and the Android OS. When Google dominates online advertising, Google can better understand the current trends in advertising, get more information about online users and their shopping habits, increase its related services, etc.
- Web Search – Google Search is a popular search engine that helps people to get more information online. It is a widely used search engine in the world both from desktop and mobile users. Google’s search engine is dominant especially in the European countries where the brand sees about 90% market share in the segments of desktop and mobile.
- Android Mobile Operating System – Google has increased recently in its advertising and many other revenues have flown in by the huge acceptance of its Android Mobile OS. This operating system is the first mobile operating system in the world and most of the smartphones make use of this operating system.
- Brand Awareness – Google is a big brand that is known worldwide. It has a lot of publicity and has great attention from many users. Its great brand awareness is a big strength for the brand.
- High Revenue – During the year 2017, Google has gained about 65 billion dollars. It has gained this revenue through various partnerships from various websites that have ensured Google this growth and its brand awareness.
- Adaptability – Google has great adaptability features and has it been successful to adapt its features on mobile and Android technologies.
Weaknesses in the SWOT Analysis of Google
- Users worry about more on data-harvesting – The brand’s huge data collection has also let to its weakness as well. Users worry more about data-harvesting. This is a major weakness for the brand. Amid the various apps and the search engine being executed constantly at the background of your mobile devices, users do not prefer the way Google accesses the user information. Also, for the users, it is almost tough to let go off Google. Users will have to provide their Gmail credentials for all the services provided by the brand.
- Secret Ranking Algorithm – Almost most people wonder as to why only a few websites and articles see a high rank on Google that the other websites? For any website, being at the top result of the keyword search is a profitable one. Business owners will have a good chance to get more advertisement revenue when people click on their website. Also, business owners pay for links that point to their company. Search Engine Optimizers analyze popular websites and articles, but Google alone knows the exact algorithm to get to the top rank. As Google is not transparent about the search algorithm, it has led suspicious about the process by the users and the business owners.
- The Risky Ad Revenue Model – Google mainly relies on ad revenue that is a great weakness for the brand. Google has more focus on the Cost Per Click (CPC) measurement. It also defines the way advertisers the cost each advertiser will pay for traffic. When the CPC declines, the profit for Google will also decline. A decline in CPC depends on many reasons that include the advertisers switching the platform and have chosen to make use of another platform for ads like Facebook, Instagram, etc. Social platforms like Facebook and Instagram and Google’s competitors.
Opportunities in the SWOT Analysis of Google
- Continuous Android OS updates – Google sees a major opportunity in the Android operating system. It is a major competitor for Apple and Samsung. Users desire for the various customization provided by Android phones and iOS lacks in this. Even though Samsung phones are being executed on Android iOS, it takes days for the phone to get more system updates. Whereas, Google phones get updates more often. Here, sees more opportunity for the brand.
- Include more Revenue Streams – Currently, Google gains more profit from advertisements. It is indeed an unstable market that would easily submit to the various competitor advertisement. Google should be able to get into more streams that would generate more revenue and be able to push commercial transactions through many apps that the company owns.
- Entering new Industries – Google sees more opportunity in entering new industries like Artificial Intelligence, Robotics, and Machine Learning. The company already has its entry into driverless cars, smart home industry using Google Home Speaker, and the entry to the health industry with the purchase of the Fitbit.
- Cloud Computing – Google, having its storage in the cloud and providing various cloud solutions, cloud computing does play a major role in Google’s marketing. During the year 2018, Google has got into a new digital store that provides various cloud-based software to all the companies. So, there see a huge opportunity for this domain.
Threats in the SWOT Analysis of Google
- Facebook pages and Business Pages – Facebook is the biggest threat to the brand. This social media platform has more than one billion active users per month. It provides business pages for content sharing, the marketplace, and various promotion posts. It also has advertising to reach potential markets. Moreover, Facebook is an excellent source of news. Some users get various news from Facebook before looking at Google. Hence, this social media platform is a major threat.
- Amazon beating Google – Google requires that it should be cautious of Amazon as well. Many people switch over to Amazon for various products instead of getting the details from Google’s store recommendations. Amazon itself hosts many reviews, sellers, shops, etc. to make the users switch over to Amazon instead of Google. Hence, this is a major threat to the brand.
- A decline in the Brand’s Market Share – As per the data, Google’s digital advertisement is seen a decline in the market share. This is a serious threat to the brand.
The SWOT analysis of Google mentioned in this article has highlighted the main strengths of the brand that comes up from its brand value, high search engine, huge data collection, biggest traffic generator, advertisement focused, various internet services, free updates on software, brand awareness, high revenue, and its adaptability.
The weakness is in the form of the users worrying more about data harvesting, risk in advertisement revenue, privacy policies, and its secret algorithm. The brand sees more opportunity on upgrading its OS regularly, including in more revenue streams, entering new domains and increasing its functionality over cloud computing.
Google sees a threat from its various competitors like Amazon and Facebook and its decline in the market share.